FEDRAC MIN 03-23-2010Finance
����� .. �
CommitFee Members in AtFendance: Committee Chair Park, Committee Member Burbidge and
Committee Member povey
Councilmembers in Attendance: Mayor Kochmar, Deputy Mayor Duclos, Councilmember Freeman,
Councilmember Ferrell (arrived at 6:00 p.m.)
Staff Members in AtFendance: City Manager/Police Chief Brian Wilson, Financial Services Administrator
Bryant Enge, City Attorney Pat Richardson, Finance Director Tho Kraus, Economic Development Director
Patrick Doherty, Deputy Public Works Director Marwan Salloum, Communications 8� Governmental Affairs
Manager Linda Farmer, Judge David Larson, Court Administrator Sue White, and Deputy City Clerk Krystal
Roe.
1. CALL TO ORDER 5:30 p.m.
2. PUBLIC COMMENT: None.
3. COMMITfEE BUSINfSS
Placement
Topic Title/Description Council
A. Approval of Minutes: February 23, 2010 - N/A
Motion and second to approve the minutes as presented. Car�ied 3- 0.
6. Legislative Briefing:
Doug Levy, Legislative Lobbyist, gave a brief state legislative update via
conference call. Mr. Levy reported on various legislation impacting Federal Way
during the special session including:
•$100,000 has been set aside in the Senate budget for the incubator
project.
• The House budget is more favorable to Federal Way than the Senate's
budget.
• 911 funding reform has been proposed.
• Mr. Levy is working to remove the Baldridge/Washington State Quality
Award component from stormwater legislation as proposed by
Representative Miloscia.
• House Bill (HB) 2984 provides a sales and use tax deferral for performing
arts centers. The legislature has proposed construction sales tax deferral for
Bellevue's performing arts center and an argument is being made that .
other cities, including Federal Way, should also benefit from such deferrals.
During the regular session, the following issues were addressed:
N/A
• Senate Bill (SB) 6609 provides infrastructure financing for local governments
which allows agencies to generate lower beginning revenue amounts.
� Federal Way
City Council
FEDRAC Meeting Summary
March 23, 2010 Page 2 of 4
• SB 6590 requires law enforcement officers to be honest and truthful in the
conduct of official business.
• HB 2961 establishes a statewide electronic sales tracking system for over-
the-counter medications used to manufacture meth.
• SB 6611 provides an extension of the deadlines for the review and
evaluation of comprehensive land use plan and development regulations
for three years and addresses the timing for adopting certain subarea
plans (growth management).
• SB 6367 allows agencies to direct requesters to their web site for public
records.
• SB 5543 establishes the product stewardship recycling act for mercury-
containing lights.
• HB 2179 authorizes cities to provide and contract for supplemental
transportation improvements.
• HB 3179 revises local excise tax provisions for counties and cities and
specifically gives cities new taxing rights regarding natural gas.
• SB 6286 addresses cities, diking districts, and flood control zone districts
related to liability and powers, using covered volunteer emergency
workers in an emergency situation, and provides grant funds to political
subdivisions.
• HB 2560 makes excess flood insurance available.
• SB 6344 expands the list of public offices requiring campaign contribution
limits to include all charter county, non-charter county, city council, and
mayoral offices. The bill limits aggregate contributions to $800 per
donating entity. The bill will become effective in June and is anticipated to
impact November elections.
Ms. Farmer highlighted the monthly reporf from Strategies 360. Ms. Farmer
announced Strategies 360 has met with staffers from the oftices of Senators
Cantwell and Murray and has met personally with Congressmen Smith and
Reicherf and HUD Deputy Secretary Sims regarding legislation and projects
important to Federal Way such as the triangle project. She noted
Congressman Smith has formally requested funding for the triangle project in
the House budget.
Ms. Farmer stated President Obama signed legislation extending SAFfEA-LU
through 2010.
� _ .�... __ .. . _ ___ __.�. _. __ __� ___.�. ..
C. RESOLUTION: Findings, Goals and Conclusions for the Medical Device Consent
Commercialization and Innovation Incubator Project aibi�o
Ms. Richardson presented the staff report and recommended approval of Option
1 which adopts the resolution memorializing the findings, goals and conclusions for
the medical device commercialization and innovation incubator project.
Motion and second to approve Option 1. Carried 3- 0.
_...__ __... __ ------------
D. ORDINANCE: Proposed Franchise Agreement with Lakehaven Utility District Intro Ord.
4/6/10
Mr. Salloum presented the staff report. He stated the proposed five-year
agreement outlines the expectations and responsibilities of Lakehaven Utility
District.
If adopted, the franchise agreement will assign all water and sewage system
services to Lakehaven, including fire hydrant services. In exchange, the Cit�
FEDRAC Meeting Summary
March 23, 2010 Page 3 of 4
agrees it will not levy utility taxes against Lakehaven's services and further agrees
it will not attempt an assumption of the District.
Mr. Wilson clarified the proposed agreement is the result of negotiations between
elected officials and executives from the City and from Lakehaven Utility District.
Motion and second to approve the ordinance and forward to the April 6, 2010 City
Council meeting for first reading (Option 1). Carried 3- 0.
_ _ __. _.._ �. _..__ _ _..__ ____ ___.._ _ __�. _ _ .. _--------.�__.._�_ __
E. Agreement for Probation Services: Consent
4/b/10
Mr. Enge and Judge Larson presented the staff report. Judge Larson introduced
the Court's new Administrator, Sue White. Ms. White has experience working for
cities that utilize day reporting as an alternative to jail time for defendants.
Judge Larson explained the cost of day reporting is a fraction of the cost of
incarceration. Furthermore, the cost of day reporfing is the responsibility of the
defendant. The agreement allows the City to pay for the cost of day reporting for
indigent defendants, but does not require it.
Under this model, defendants sentenced to day monitoring will report to
Providence and stay in their building all day. Defendants are charged $10 per
day for the program which is similar to high school detention. This tool will be used
on a case-by-case basis but will not likely be used for domestic violence cases
and wilt not replace mandatory minimum jail time. However, it can be used in
conjunction with mandatory jail time (i.e. sentencing a defendant to jail time for
the mandatory minimum time and adding additional day reporting time). It is best
used as a method of punishment for low-level crimes.
Also, the Court is researching options to include required education classes (such
as life coaching, drug school, DUI school, etc.) to coincide with day reporting in
an effort to reduce non-compliance and subsequent bench warrants/Court
processing.
Motion and second to authorize the agreement between the City of Federal Way
Municipal Court and Providence Services Corporation for misdemeanor probation
services (Option 1.) Carried 3- 0.
F. Interlocal Agreement with City of Auburn for Resource Conservatlon Manager Consent
(RCM) a�b�io
Mr. Enge presented the staff report and highlighted key changes to the interlocal
agreement:
• City of Auburn is now explicitly included in the joint hiring/selection process
for the RCM (it was previously implied).
• Establishes the RCM position as a temporary, full-time employee.
Prescribes representatives from Auburn and Federal Way will jointly
supervise the RCM and both agencies are responsible for any necessary
discipline/counseling.
Motion and second to approve the proposed modifications to the agreement
with the City of Auburn for Shared Resource Conservation Management Services
(Option 1). Carried 3 - 0.
-_ _......
G. Monthly Financial Report: Consent
4/6/10
Ms: Kraus presented her staff report and noted differences between budgeted
and actual revenues and expenditures. She reported the following correction to
the narrative regarding hotel/motel taxes on page 72:
FEDRAC Meeting Summary
March 23, 2010 Paqe 4 of 4
_ __
Due to the timing of Council's approval of the downward hotel/motel tax
revenue adjustment, it is not included in the February MFR but will be
reflected March's report. Taking into consideration of the revised 2010
budget of $165K, not the $1 SOK as stated in the narrative, hotef/motel tax is
down $4K compared to year-to-date budget. One major hotel
establishment is reporting $4K less in revenue compared to 2009.
The Committee inquired about the low sales tax collections for Federal Way
Crossings. Ms. Kraus will investigate the tax collections and provide additional
details at the next FEDRAC meeting.
Ms. Kraus stated $115,000 in revenue from a pending property sale is expected in
the next month.
The Committee inquired about increased payments to ATS for photo-enforcement
services. Ms. Kraus replied the increase is because additional cameras are now
online. Mr. Wilson noted older camera locations are experiencing reduced
violations (and subsequently reduced citation revenue) which is a positive result.
The City's goal is to reduce driver violations of traffic laws.
Motion and second to approve the Monthly Financial Report and forvvarded to
the November 3, 2009 Consent agenda. Carried 3- 0.
H. Vouchers:
Chair Park inquired about an expenditure for a dishwasher rental. Ms. Kraus
replied the commercial equipment has been rented on a trial basis. Staff is
evaluating whether to continue renting the equipment or to purchase it instead.
Motion second and carried to approve the vouchers as presented and forward to
the April 6, 2010 Consent agenda. Carried 3- 0.
4. OTHER: None discussed.
5. FUTURE AGENDA ITEMS: None discussed.
6. NEXT MEETING: Tuesday April 27 2010.
Consent
4/6/10
Meeting adjourned at 6:45 p.m.
Attest:
Krystal Roe, Deputy City Clerk
COMMIITEE APPROVAI: � �
` �
9
Mik rk � Jeanne Burbidge J k Dov y
omm ee air ��� Committee Membe Com ittee mber